Z Energy 1HFY22 Earnings

Solid earnings recovery hampered by COVID-19 lockdowns and rising input costs * RC EBITDAF of $114m up 20% versus PCP of $95m * Total marketing volume up 11% versus PCP with COVID-19 lockdowns affecting demand in 2Q with Auckland regional volume up 8% versus PCP * Retail margin compression, especially in 2Q due to rising crude and product prices, offset by Z's long ETS position in a rising carbon market * Z Board has entered into a binding Scheme Implementation Agreement (SIA) with Ampol at an overall value of $3.83 per share * Full year FY22 guidance confirmed of RC EBITDAF between $270m and $310m * Fully imputed interim dividend of 7 cents per share declared Z Energy (NZX / ASX: ZEL) today announced its earnings for the six months to 30 September 2021. Z Energy (Z) reports its earnings on an historic cost (HC) as well as replacement cost (RC) basis. Statutory financial statements are reported on an historic cost basis in accordance with NZ IRFS, however replacement cost accounting is the globally used non-GAAP industry standard to measure financial performance. Historical cost net profit (loss) after tax (HC NPAT) was $92m for the half year, up 259% from a loss of ($58m) in the prior corresponding period (PCP) primarily driven by rising crude and product prices. Z reported replacement cost earnings before interest, depreciation, and amortisation (RC EBITDAF) of $114m, up 20% from $95m in the PCP primarily due to increased refining processing volume and improved unit refining margin along with increased C-Store sales and Z establishing a long ETS position in 1Q. Z's replacement cost net profit after tax (RC NPAT) was $11m, up 158% from a loss of ($19m) in the PCP. Mike Bennetts, CEO for Z Energy commented, "Z remains focussed on its FY24 roadmap objectives; to optimise the core business, transition the company to a low carbon future and maintain disciplined capital management. Z delivered on its four-point improvement plan against a challenging operating environment from COVID-19 related lockdowns and rising crude and product prices." Net operating cash flow decreased versus PCP due to the cash settlement of the CY20 Emissions Trading Scheme (ETS) obligation and increased product prices. A fully imputed interim dividend of 7 cents per share will be paid on 8 December 2021 with the dividend record date being 19 November 2021. End CA:00382180 For:ZEL Type:HALFYR Time:2021-11-04 08:30:45